Markets closed higher yesterday, with the S&P adding 1.10%. Asia markets closed mostly higher overnight while Europe indexes are in the red. U.S. futures are pointing to a lower open while the Dollar, Oil, Gold, and Yields are all in the green.
And this is what UPB is reading this morning: https://www.optionmillionaires.com/morning-reads-186/
Markets rallied yesterday, continuing its bounce from the Wednesday lows. This morning was the December PCE data and it came in mostly inline. Next week is a big one, with the Fed set to likely raise rates another .25% on Wednesday and a huge lineup of earnings. The S&P is now up 5.75% for the year while the Nasdaq is up 9.99%. Next week will likely set the tone for the coming weeks. The golden cross happened on the SPY yesterday, with the 50dma now above the 200dma. Still think we are headed to $410 and then $415+ in the coming weeks. Not saying we are out of the woods on more downside this year, but do think there is a continued opportunity to play names for upside, particularly in Biotech:
I finally added some VRTX calls. That stock looks poised to breakout over $330 in the coming days. They also report earnings on Feb 7th, which should help keep premiums elevated. Will look to take some calls off to cover costs and ride the rest:
SQ gapped higher yesterday and I was able to close some more calls for over 300%. Will likely look to close the last of my Feb strikes and add some later dated strikes to encompass their earnings on Feb 23rd:
AI had another strong session, closing above $15. I was able to close the last of my weekly calls out for 300%. Sure looks like a gap fill to $18 is coming. May look to add some march calls and will continue to hold my Feb strikes:
FVRR was weak yesterday so passed on adding anything. Still watching for an entry on some calls:
Lastly, SAM is back on the radar. It has had a nice bounce from the lows but think it can break into the $400s before its earnings on Feb 15th:
Here are the analyst changes of note for today:
Chewy (CHWY) upgraded to Outperform from Neutral at Wedbush; tgt $55
Premier (PINC) upgraded to Neutral from Underperform at Credit Suisse; tgt $38
Take-Two (TTWO) upgraded to Outperform from Market Perform at MoffettNathanson; tgt $140
Vir Biotechnology (VIR) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt raised to $30
Downgrades: Bridgewater Bancshares (BWB) downgraded to Neutral from Overweight at Piper Sandler; tgt lowered to $17
CBRE Group (CBRE) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $88
Datadog (DDOG) downgraded to Neutral from Buy at BTIG Research
Playtika (PLTK) downgraded to Neutral from Buy at DA Davidson; tgt $11
Ralph Lauren (RL) downgraded to Underperform from Market Perform at BMO Capital Markets; tgt $100
Steel Dynamics (STLD) downgraded to Neutral from Buy at Goldman; tgt raised to $118
Teradyne (TER) downgraded to Hold from Buy at Loop Capital; tgt lowered to $102
Y-mAbs Therapeutics (YMAB) downgraded to Underweight from Equal-Weight at Morgan Stanley; tgt $4
And here is what I am watching today: SAM, FVRR, AI, YEXT, IBM, AXSM, SQ, ZYME, ICPT, SPOT, U, MASI, ROKU, NFLX, ALGN, GNRC, VKTX, UDMY, RARE, SAGE, and CMG.
Let's have a great day!
-JB